May 21 (Bloomberg) -- United Airlines partner SkyWest Inc.
agreed to buy more than $4 billion of Embraer SA jets as new
pilot contracts at the largest carriers allow commuter operators
to fly bigger planes.

The accord comprises 40 firm orders for 76-seat E175 jets
with two-class cabins that will be flown for United for 12
years, St. George, Utah-based SkyWest said today in a statement.

The aircraft will be the first 76-seat regional jets in
United Express’s fleet after parent company United Continental
Holdings Inc. joined AMR Corp.’s American Airlines and Delta Air
Lines Inc. in crafting labor agreements allowing the larger jets
to be used that way. Regional airlines pay less, which reduces
costs for the carriers.

“In this very competitive business of operating regional
jet aircraft, we are appreciative to have been given the
opportunity and we are committed to providing an outstanding
level of service to United,” SkyWest President Bradford Rich
said in the statement.

The order also marks another win for Sao Jose dos Campos,
Brazil-based Embraer after United agreed to buy 30 of the E175s
in April and American and its regional partner Republic Airways
Holdings Inc. agreed on an order of 47 Embraer E175 jets earlier
this year.

Delivery Schedule

SkyWest also has a conditional purchase agreement for 60
more of the E175 jets pending operating agreements with other
airlines, plus options for 100 more, Embraer said in a separate
statement. That gives the whole order a value of $8.3 billion at
list prices, though airlines typically get a discount.

The firm deliveries for United Express will begin in next
year’s second quarter and run through mid-2015, SkyWest said.

In December, Delta agreed to buy as many as 70 Bombardier
Inc. CRJ-900 jets with 76 seats, rebuffing Embraer. Montreal-based Bombardier is helping Delta get rid of five dozen 50-seat
CRJ200 planes as part of that accord.

SkyWest climbed 0.6 percent to $14.26 at the close of
trading in New York. Chicago-based United dropped 2.7 percent to
$33.35.